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Finance for
executives (Corporate Finance) Team building and team building events |
FINANCIAL PROJECT APPRAISAL - A 2-DAY COURSE This course is concerned with the financial evaluation
of projects. It aims to show managers and others how it is done and to give
them the skills necessary to produce reliable financial data for their own
projects. The aim of the course is to increase competency in this area for
those people involved in project financial evaluation so that they will be
more confident to undertake work of this type. The course is practical and
concentrates on applying the techniques in the work place. It will simplify and demystify this complex
topic. At the end of the
course participants will be able to produce financial data for projects and
understand and use that information to make good decisions. CONTENT Financial criteria in project appraisal Financial appraisal methods: Cost benefit
analysis and the benefit cost ratio Accounting rate of return Payback Discounted cash flow: The time value of money: compounding & discounting Internal rate of return (IRR) Net present value (NPV) Economic return Identifying the
discount rate: The basic
components of discount rates – time reward, risk and inflation Opportunity costs
of capital and the weighted average cost of capital Equity and the
capital asset pricing model: risk free rates & risk premiums Producing project financial forecasts: Identifying and
quantifying costs and benefits Dealing with
intangible items e.g. morale, safety Estimating costs
and benefits – sources of data Calculating free cash flows: What to include in relevant costs and incomes Sunk costs, ripple effects and opportunity costs Deciding on a project life Dealing with
taxation and inflation – real cash flows and money cash flows Uncertainty and
risk in the base data: Risk – using risk premiums as a way to manage risk Sensitivity analysis explained and explored Probability analysis and how to use it in project situations METHOD The course will
use a mixture of lecture input, discussion and practical exercises to give participants
the necessary skills to be able to use these data and work with them. |
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